Summary
The applicant, a 39-year-old logistician for a defense contractor, faced security clearance denial under Guideline F due to unresolved financial issues stemming from a bankruptcy and mortgage debts. Despite having some funds available, he failed to make payments on approximately $140,000 in mortgage debts, which he attributed to his ex-wife's gambling habits. The judge found no mitigating circumstances to justify the applicant's financial irresponsibility, leading to the denial of his clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: On or about February 19, 1999, Applicant, along with Wife as joint debtor, filed a voluntary petition for bankruptcy in State A under Chapter 7. The petition showed total assets of $117, 011.00 and total liabilities of $140, 124.68. The bankruptcy court granted a discharge under Chapter 7 on or about May 28, 1999 (1.a). After the bankruptcy discharge, Applicant and Wife reaffirmed the first and second mortgages on the family home in State A. The mortgages were held by Bank B (first) and Bank C (second). As part of the divorce settlement, the two parties agreed that Wife would stay in the house and be responsible for making house payments. However, monthly payments apparently stopped as of April 1, 2000, "a few months" after Applicant "moved out" of the house for the last time (1.b). Applicant is indebted to Bank B in the amount of approximately $89,300.00 for past due/delinquent mortgage payments owed on the first mortgage. It does not appear that Applicant has made any payment on this debt (1.c). Applicant is also indebted to Bank C in the amount of approximately $25,047.78, for a second real estate mortgage on the same property as that in SOR 1.a. Applicant did not pay his monthly installments on time (1.d).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.c. The decision turned on the following: The applicant failed to make any payments on his mortgage debts for almost two years; He did not demonstrate any substantive effort to resolve his financial obligations despite having some funds available; The applicant's claims regarding his ex-wife's financial culpability did not absolve him of his joint responsibility for the debts.
Why the Applicant Was Denied
- The applicant failed to make any payments on his mortgage debts for almost two years.
- He did not demonstrate any substantive effort to resolve his financial obligations despite having some funds available.
- The applicant's claims regarding his ex-wife's financial culpability did not absolve him of his joint responsibility for the debts.
Conditions Referenced
- F.1.araisedA History of Not Meeting Financial Obligations
- F.1.craisedInability or Unwillingness to Satisfy Debts
Key Rule Quoted
“any doubt as to whether access to classified information is clearly consistent with the interests of national security will be resolved in favor of the nation's security.”
Procedural Posture
- SOR issuedAug 10, 2001
- Answer filedSep 5, 2001
- Hearing heldOct 26, 2001
- Decision dateJan 7, 2002
Cite For
- Failure to Demonstrate Financial Responsibility Under Guideline F
- Impact of Personal Circumstances on Financial Obligations
- Insufficient Evidence of Mitigation in Financial Cases